In this article, KRCL construction lawyer Brian Stork discusses the recently passed Texas Senate Bill 219 that overrides the long-standing Lonergan Rule. Under the Lonergan Rule, Texas was one of the few states the placed responsibility for damages resulting from design errors on contractors, rather than the property owner, unless the applicable construction contract included specific language to the contrary. Effective September 1, 2021, Senate Bill 219 adopts the Spearin Doctrine, with certain delineated notice requirements and exceptions, and places Texas in line with the substantial majority of other jurisdictions placing the risk of loss for design errors on property owners.
Kane Russell Coleman Logan is a full-service law firm with offices in Dallas and Houston. Formed in 1992, the Firm provides professional services for clients ranging from Fortune 500 companies to medium-sized public and private companies to entrepreneurs. KRCL handles transactional, litigation and bankruptcy matters in Texas and throughout the country.